Free Money and a College Education

April 5th, 2012

Since their inception, 529 college savings plans have been a great way for anyone to help a young person save for college while earning tax benefits for themselves.

529 college savings plans (named for section 529 of the Internal Revenue Code) are special investment accounts designed to help families save for higher education at eligible two- and four-year colleges, postgraduate programs, or secondary trade and vocational schools.

These state-run savings plans vary from state to state, and nowhere are the benefits greater than in the state of Missouri.

Matching Grants

This year, Missouri State Treasurer Clint Zweifel announced the MOST Matching Grant Program to help many Missouri families save for higher education. The MOST 529 Matching Grant Program provides a privately funded dollar-for-dollar match on contributions to a 529 plan, up to $500 per year, with a lifetime maximum of $2,500 for households with a Missouri adjusted gross income from $0 to $74,999.

This is an opportunity to not only save for a college education through a tax deferred program, but gain a matching contribution from the state. This is a powerful benefit that nobody should pass up.

Limited Time to Apply

The application process to apply for the MOST 529 Matching Grant Program opened March 1, 2012, and the final date to submit an application is June 20, 2012.

Tax Benefits

Your 529 assets grow tax-deferred, and withdrawals are exempt from federal income tax when used for qualified higher-education expenses. There are additional state tax benefits and other considerations that may impact you. We encourage you to consult a tax adviser for further guidance.

Missouri at Work

Once again we applaud Treasurer Zweifel, his staff and the entire state Legislature for developing programs that truly benefit our hard working friends, families and neighbors.

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